It s a lean life! The Journey

What is LEAN?

Lean Tools-5S, Takt time, Kaizen, SMED, A3, JIT, KANBAN Using the scientific method to continuously improve the business and other related parts of the entire value stream A complete change in the way that we work as human beings From individual heros to strong teams From computer driven systems to simple, physical ones From complex systems understood by experts to simple systems that give power to the workers From job=work to job=work + improving the work(kaizen)

Nappanee Window Extrusion Mill

Turning point for me Turning Point Lost 40m/yr business in the downturn Sold off assets and saw all of our mistakes only dabbled with lean Saw many of the same issues at Alum Trailer but now saw thru lean eyes

Company Overview Founded 1999 Purchasing in Cargo Trailer Co. Elkhart County- Trailer Capital RVs Cargo Trailers

Products

Reason For Action-Phase 1 60% Drop in Sales from 07-09 Relied heavily on tribal knowledge Average Vendor paid 25 days late Negative equity 5 inventory turns

Separated into 3 lines based on work content and complexity Line 1(Raven) Line 3(Custom/Large) Line 2(Midline)

Value Streams 10

Trailer Design Order Order Trailer Design Inside sales Order Order Production Drawings Production team members Order Order Order Order Order Order Order Order Order Order Order Value Stream Leader Order Purchasing and Scheduling

VALUE STREAM 2 TEAM

Metrics

Numbers 1000 weekly output 500 material cost/non material margin 500 left over 400 people cost

Phases of lean at ATC Trailers 7 Years of lots of hard work!!!

Improve Flow-8 months Before After

Clean up the mess-3 years Before After

Sort, Set, Shine, Standardize and Sustain-4 years Before After

Supermarket/Material Supply System-3 years Before After

Materials/Kanban to the line

Value Stream Management-2012 to present

Phase 3: Lean Management System Lean= Process Improvement Tools Something was missing

Lean Management System everybody, every where, every day comes together in small teams and reflects on how we did yesterday, where was the waste, and how we can do better today Joe Murli

True North Zero Defects 15% Productivity Improvement year over year 100% value-added activity 100% on time delivery Respect for People True North is the unifying, overarching purpose for the entire organization and keeps the individuals and organization all pulling in the same direction.

Visual Controls Visual Management makes clear to the entire team both at the working task level and leadership what should be happening versus what is actually happening

Standard Work: Everyone talks about it but no one does it Operational Standard Work is what the people on the front line are doing creating value for the customer. It is also the platform upon which the next improvement is built.

Standard work-current

Open Utility Frame Table January 8, 2015 November 3, 2015 February 24, 2016 Cycle time 181 minutes Cycle time 134 minutes Cycle time 84 minutes 1 Week Production Example 5 People 6 OCH 8 OUT $44,735/week 1 Week Production Example 6 People 11 OCH 25 OUT $93,242/week 1 Week Production Example 7 People 13 OCH 25 OUT $108,600/ week

Results-Labor Minutes on Open Utility line 1/30/15 360 7/30/15 315 4/13/16 31% Increase 248

People Systems Training Leaders to lead in a new way Training ourselves to ask the right questions People Systems ensure that HR/People Development systems, policies, and practices align with the behaviors necessary for continual improvement.

Leader Standard Work-Bus Schedule

Accountability Systems Accountability Systems are the methods employed to avoid the trap of assigning a failure to individual blame as a management control mechanism. It encourages the surfacing of problems throughout the organization in an objective and actionable way.

Daily Reflection/Tier Meetings Tier 2-Market Tier 2-Final

Video of Tier 2 meeting

Changing the way we work as human beings- CAN T BE DELEGATED!

Lean accounting: is simple and just makes sense to lean organizations

Lean at home 37

Lean at home